Farepak victims' fury at shamed banker after he escapes probe into failure

FORMER Farepark customers wanted Peter Cummings ­punished for the ­decision made by HBOS’s ­corporate lending division, which he ran, to allow savers to keep ­paying in when it was clear it would be shut down.

FAREPAK victims have hit out after banker Peter Cummings avoided a probe into his role in the collapse of the Christmas hamper firm.

He was fined a record £500,000 by the Financial Services Authority last week and banned from holding a senior banking post for life for his role in Halifax Bank of Scotland’s near-collapse.

Former Farepark customers wanted shamed Cummings ­punished for the ­decision made by HBOS’s ­corporate lending division, which he ran, to allow savers to keep ­paying in when it was clear it would be shut down.

Swindon-based Farepak ­collapsed in 2006, leaving 114,000 customers with total losses of £37million.

Cummings, who retired in 2009 with a pension of £352,000 a year, was fined for his “management ­failings” last week and was ­criticised for running a disastrous aggressive growth strategy at the bank between 2006 and 2008.

But FSA sources confirmed that Cummings will not be facing any further sanctions over Farepak.

The firm’s directors were ­controversially cleared in June when a court case against them collapsed.

Mr Justice Peter Smith hit out at HBOS, who were heard in evidence to have called savers’ cash “Doris money”, a snooty reference laced with disdain for the hard-working people who handed over their money in good faith.

The high court judge said: “HBOS knew those deposits would be paid … and that the only beneficiary of those deposits would be HBOS.”

Cummings, 57, was holed up at his luxury home in Dumbarton this week. He earlier said he would not appeal the decision but refused to comment further to Sunday Mail investigators.

Louise McDaid, chair of the Farepak Victims’ Committee in Scotland, said: “It’s a disgrace the way in which HBOS viewed Farepak and talked about Doris money.

“They treated Farepak customers with utter contempt. Even if Peter Cummings didn’t say it personally, his bank was behind it.

“I’ve got no sympathy for an ­individual like that who behaves in the fashion he has.

“We asked the Government at the very beginning to launch a criminal investigation into the whole collapse of Farepak, which would have covered HBOS as well, and they refused to do it.

“The directors got off and now this. It seems like if you wear a suit you can get away with anything.”

Long-suffering Farepak ­customers look set to receive almost half their money back after ­liquidators of the collapsed ­Christmas hamper group finally agreed ­dividend payments.

Cummings was dubbed “the man who broke HBOS” after his division lent billions that ultimately blew up after Lloyds were forced to save HBOS in 2008.

But after last week’s decision the moaning banker called the FSA’s fine “grotesque” and blamed others for the mess.

Shareholder action group Lloyds Action Now called for the humbled executive to reveal “who knew what” to support their case.

They are poised to launch a ­£2billion lawsuit against Lloyds directors on behalf of 7500 small investors for allegedly misleading them over the takeover of HBOS.

Cummings refused to comment when approached. A spokesman for the FSA declined to comment.